By Oakley H.B. No. 1467
74R6130 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to membership in the Teacher Retirement System of Texas by
1-3 persons participating in the optional retirement program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 830.106, Texas Government Code, is
1-6 amended to read as follows:
1-7 Sec. 830.106. OPTIONS A participant in the optional
1-8 retirement is not eligible for membership in the retirement system
1-9 unless the person:
1-10 (1) terminates employment covered by the optional
1-11 retirement program; and
1-12 <(2)> becomes employed in the public school system in a
1-13 position that is not eligible for participation in the optional
1-14 retirement program; or
1-15 (2) files an election with the retirement system on or
1-16 before September 1, 1997, to establish membership in the retirement
1-17 system and cease participation in the optional retirement program.
1-18 The election shall be under rules prescribed by the State Board of
1-19 Trustees and the Internal Revenue Service. A person who files an
1-20 election under this subsection may retain any benefits or other
1-21 rights accrued under the optional retirement program during the
1-22 person's participation in the program. A person who files an
1-23 election under this subsection may reinstate service credit in the
1-24 retirement system that was relinquished by withdrawal of
2-1 contributions from the retirement system under Section 830.104 of
2-2 this code. The credit may be reestablished by depositing the
2-3 amount withdrawn plus a reinstatement fee of 10 percent per annum
2-4 compounded annually from the date of withdrawal to the date of
2-5 redeposit. A person may also purchase service credit in the
2-6 retirement system for state service rendered while in the optional
2-7 retirement program by depositing an amount equal to the sum of the
2-8 state's and employee's contribution rate in the retirement system
2-9 that was in force at the time of service rendered plus a fee of 5
2-10 percent per annum compounded annually from the date of service
2-11 rendered to the date of deposit. All deposits shall be credited to
2-12 the state contribution account of the retirement system.
2-13 SECTION 2. This Act takes effect September 1, 1995.
2-14 SECTION 3. The importance of this legislation and the
2-15 crowded condition of the calendars in both houses create an
2-16 emergency and an imperative public necessity that the
2-17 constitutional rule requiring bills to be read on three several
2-18 days in each house be suspended, and this rule is hereby suspended.